Financial and regulatory contexts

The aim of this book is to study three essential components of modern finance – Risk Management, Asset Management and Asset and Liability Management, as well as the links that bind them together.
It is divided into five parts:
Part I sets out the financial and regulatory contexts that explain the rapid development of these three areas during the last few years and shows the ways in which the Risk Management function has developed recently in financial institutions.

In the last decade rating-based models have become very popular in credit risk management. These systems use the rating of a company as the decisive variable to evaluate the default risk of a bond or loan. The popularity is due to the straightforwardness of the approach, and to the upcoming new capital accord (Basel II), which allows banks to base their capital requirements on internal as well as external rating systems.

This textbook will be designed for fixed-income securities courses taught on MSc Finance and MBA courses. There is currently no suitable text that offers a 'Hull-type' book for the fixed income student market. This book aims to fill this need. The book will contain numerous worked examples, excel spreadsheets, with a building block approach throughout. A key feature of the book will be coverage of both traditional and alternative investment strategies in the fixed-income market, for example, the book will cover the modern strategies used by fixed-income hedge funds.

Edited by Rajnish Mehra, this volume focuses on the equity risk premium puzzle, a term coined by Mehra and Prescott in 1985 which encompasses a number of empirical regularities in the prices of capital assets that are at odds with the predictions of standard economic theory.This handbook is indispensable for any serious assessment of the state of the art on the famous equity premium puzzle.

Copula Methods in Finance is the first book to address the mathematics of copula functions illustrated with finance applications. It explains copulas by means of applications to major topics in derivative pricing and credit risk analysis. Examples include pricing of the main exotic derivatives (barrier, basket, rainbow options) as well as risk management issues. Particular focus is given to the pricing of asset-backed securities and basket credit derivative products and the evaluation of counterparty risk in derivative transactions....

.“This book develops the conceptual foundations required for the analysis of markets with asymmetric information, and uses them to provide a clear survey and synthesis of the theoretical literature on bubbles, market microstructure, crashes, and herding in ﬁnancial markets. The book is not only useful to the beginner who requires a guide through the rapidly developing literature, but provides insight and perspective that the expert will also appreciate.

This title sets out to equip the lay reader with a clear and thorough explanation of financial derivatives and how they work. It features an introduction to the entire realm of derivatives, utilising a range of real life examples to provide a broad outlook on the subject matter which is global in perspective. It also presents a lucid conceptual background to derivatives by avoiding unecessary technical details.

In addition to substantive reforms of the authorities and practices of regulation and
supervision, the proposals contained in this report entail a significant restructuring of our
regulatory system. We propose the creation of a Financial Services Oversight Council,
chaired by Treasury and including the heads of the principal federal financial regulators
as members. We also propose the creation of two new agencies.

It is critical for internal audit to develop a systematic means to analyse risk. Risk is
any event that could prevent the company from achieving its business objectives.
A risk assessment allows the auditor to consider how potential events might affect
the achievement of business objectives. The risk assessment process begins by
defining the audit universe. The audit universe includes all of the business units,
processes and operations. Next, the auditor must understand the company’s
business model within the context of its industry and its key business
objectives.

• Modern technological networks are on a collision course with human organizations, both civilian and military: – conflicts arise in all stages: design, configuration, and operations – conflicts with regulatory and C2 constraints – competing financial and other incentives • Time is ripe to integrate economic thought into networking – current technology isolated from human goals and constraints – we must manage and design networks in their broader contexts
Cleared for public release, distribution unlimited
Network-centric Operations are at Risk
• • • • Increasingly ...

A third area is the role of regulation frameworks. The importance of setting in place
efficient regulatory structures as a prerequisite to the efficient operation of the insurance
sector and particularly in the context of insurance liberalization and an evolving global
insurance sector is essential. Emerging trends in the global insurance market particularly
those relating to technology, newer financial products and corporate failures have
underscored the value of regulation in the insurance sector.